402. False statements or reports

Question 1

402. False statements or reports

Answer 1

General overview
[402.01] Section 401 deals with false and misleading statements made by any person in any return, report, balance sheet, financial statements or other document, or in any advertisement, circular or publication concerning the matters mentioned in that section, and s 402 makes it an offence for an officer of a corporation who, with intent to deceive, makes or furnishes, or knowingly and wilfully authorises or permits the making or furnishing of any false and misleading statement or report to a director, auditor, member, debenture holder or trustee for debenture holders; or in the case of a corporation that is a subsidiary, an auditor of the holding company, relating to the affairs of the corporation. “Officer” includes a past officer of the corporation: s 402(2).

Question 2

False invoices

Answer 2

[402.02] The accused was found guilty of an offence under s 402(1)(a) for causing the company of which he is a director to accept false invoices so as to fulfil the financing conditions in relation to a vessel construction project. The offence was committed for commercial expediency and no loss was suffered by the financier, who in fact profited from the transaction. He was fined $10,000 and disqualified from being a director or be concerned or involved in the management of a company for five years. However, the Attorney General’s appeal against an earlier decision to grant him leave to participate in the management of a company was dismissed